In Rangpur, Bangladesh, the potato market dynamics have shifted, with syndicates in collaboration with cold storage facilities manipulating the supply chain. This manipulation has led to an artificial scarcity in the market, despite ample stock in cold storages, consequently inflating prices in local markets. The cost of potato cultivation has surged due to increased prices for fertilizers, diesel, insecticides, medicines, and labor.
Market surveys reveal that prices for different potato varieties, such as the high-yielding cardinal variety and local varieties like sheel and sada, remain elevated for extended periods. The Department of Agricultural Extension (DAE) Rangpur reports that the region, encompassing five districts, dedicated over 100,000 hectares to potato cultivation last season, yielding over 1.6 million tonnes of produce. Despite this, the 38 cold storage facilities in the district, with a combined capacity exceeding 430,000 tonnes, are releasing potatoes to the market at a controlled pace.
Retailers indicate that farmers, typically without stock at this time of year, are forced to purchase potatoes at higher prices from traders and cold storage operators. The latter have been accused of overcharging for storage, citing increased power costs, thus exacerbating the financial burden on farmers and traders alike. Retail prices in markets are significantly higher than those in storages, reflecting additional transportation costs.
The situation has sparked protests among potato farmers and traders, demanding a reduction in cold storage fees. They argue that the inflated storage charges and the syndicate's market manipulation are unjust, calling for immediate action to address the issue. Cold storage owners, however, attribute the high market prices to increased operational costs and a shortfall in production compared to the previous year.
Source: The Business Post